Chennithala reiterates corruption charge on extending Maniyar Project contract

Kozhikode (Kerala), Dec 13 (PTI) Reiterating his stance, senior Congress leader Ramesh Chennithala on Friday alleged that the State government's decision to extend the BOT (Build, Operate, and Transfer) contract with Carborundum Universal Limited for the Maniyar mini hydel project by another 25 years is part of a major corruption deal.

Reiterating his stance, senior Congress leader Ramesh Chennithala on Friday alleged that the state government's decision to extend the BOT (Build, Operate, Transfer) contract with Carborundum Universal Limited for the Maniyar mini hydel project by another 25 years is part of a major corruption deal.

He claimed that the Kerala Electricity Board (KSEB) itself had requested the project be handed over to it.

Chennithala's statement came after Industries Minister P Rajeeve said that the captive power plant contract given by the government led by former Leader of Opposition Ramesh Chennithala's party (Congress) in 1994 has a provision for renewal after 30 years if the company requests it.

Addressing the media here, Chennithala said that there is no such agreement and the KSEB has demanded the return of the project.

"A copy of the letter sent by the KSEB demanding to hand over the project to it is in my possession," he claimed.

Chennithala had on Thursday also alleged that extending the contract for another 25 years was allegedly smacked of corruption.

The said contract should have ended on December 30, 2024.

"A notice should be given to the Carborundum company 21 days before this and the government has not given that notice," he said on Friday.

It was in 1990 that the Left government allowed the entry of private companies into the power sector as per its power policy.

Accordingly, Carborundum Universal was given approval to implement the Maniyar hydroelectric project, with a production capacity of 12 MW.

The agreement was that the power generated through the project would be allowed to be used by the company for its industrial requirements and that the rest would be given to Kerala State Electricity Board (KSEB).

Chennithala accused the CPI(M) of controlling the Electricity Department, alleging that the Industries Minister and the Chief Minister have made the Electricity Minister a mere scarecrow.

He claimed that extending the contract to the company amounted to corruption, pointing out that the memorandum of understanding had not been adhered to.

"The Electricity Minister, who merely signs wherever directed by the Chief Minister and Industries Minister, should not remain in office," he said.

Chennithala further alleged that the Industries Minister was colluding to secure profits for a private company, resulting in corruption worth crores.

He noted that the 1991 contract with the company did not include provisions for renewal.

"The company did not incur any loss during the floods. Even if there were damages, they could have been recovered through insurance," he argued.

Highlighting the broader implications, Chennithala warned that extending the contract for the Maniyar project would set a precedent, forcing similar extensions for other hydel projects in Kerala, about 12 such projects are there.

He criticised the Industries Minister for protecting the interests of capitalists instead of those of the people.

On Thursday, responding to Chennithala's allegations, Rajeeve had stated that the captive power plant contract awarded by the government in 1994, led by Congress, included a provision for renewal after 30 years if the company requested it.

"Captive power plants are used by industries to generate electricity for their own consumption," he said.

"According to the laws and regulations of the country, there is no specific time limit for such contracts," Rajeeve stated.

Companies that generate and sell electricity are required to return it after the agreed period, however, for us, providing an option for renewal to a key company that has been operating in Kerala's manufacturing sector for decades is a reasonable decision, he added.

"There is no basis for controversy in this matter and the current situation shows that industries are increasingly choosing to invest in Kerala," he said. PTI ARM ARM ADB